Jindal Steel and Power gains on MoU with Jindal Renewables for the largest investment in green hydrogen

In a filing to the stock exchanges, Jindal Steel said that it has signed an MoU with JRPL for the largest investment in green hydrogen for steel production. This partnership highlights a major commitment from both companies to decarbonisation and leadership in green energy within India’s steel sector.

Under the MoU, both the Jindal Group companies plan to use green hydrogen at their Direct Reduced Iron (DRI) units located in Angul, Odisha, for steel production. The collaboration will ensure a sustainable long-term business model by establishing an off-take agreement for the next 25 years.

In the first phase, Jindal Renewables will develop a green hydrogen production capacity of up to 4,500 tons annually, with operations set to begin by December 2025. Additionally, the project will involve supplying 36,000 tons of oxygen annually for use at the Angul steelworks.

JRPL will also provide approximately 3GW of renewable energy to JSPL’s operations, aiming to cut the steelmaker’s reliance on coal-fired energy by 50% within the next 2-3 years. This shift to green energy is expected to significantly reduce the company’s carbon footprint.

JSPL will offer crucial infrastructure and support while JRPL will manage the development and operation of the green hydrogen and renewable energy facilities.

The MoU aims to significantly reduce the cost of green hydrogen production through innovative engineering and secure a sustainable long-term business model by establishing an off-take agreement for the next 25 years.

Commenting on the collaboration, Sanjay Singh, Director of Strategy and Corporate Affairs at JSPL, said that this MoU marks a pivotal moment in our journey towards decarbonisation using green hydrogen and green energy, accelerating our transition to lower-emission steel.

Jindal Steel and Power shares rallied 1.73% as much as to hit an intraday high of ₹1,049. However, the stock trimmed its early gains to close at 1.02% higher at ₹1,041.60 apiece on the NSE.